Japan, South Korea, Malaysia Back Gujarat’s Semiconductor Ecosystem

Gujarat has received fresh investment proposals worth ₹1,600 crore from companies based in Japan, South Korea and Malaysia to strengthen its semiconductor ecosystem. The announcements were made during the Gujarat Semiconnect Conference 2026 held in Gandhinagar. These investments focus on semiconductor manufacturing, R&D, chemicals, equipment, and deep-tech startups, helping build a complete semiconductor value chain in the state.

Key Investment Proposals

Company / PartnerInvestmentProject
Horiba GroupR&D investmentSemiconductor instrumentation research centre in Ahmedabad
Hotayi Electronic₹250 croreSSD & memory module manufacturing plant at Sanand
Hi-Spec Ltd₹750 croreSemiconductor-grade hydrofluoric acid production
Kiansh International Technologies₹25 croreGas abatement systems and scrubbers
Kaynes Semicon₹500 croreInvestment in SpectraGaze Systems startup

Total ecosystem investment announced: ₹1,600+ crore.

Major Projects & Collaborations

1. Horiba Group – Semiconductor R&D Centre

Japan’s Horiba Group, through Horiba India Pvt Ltd, signed an MoU with the Gujarat government to establish a semiconductor R&D centre in Ahmedabad.

Focus Areas

  • Semiconductor-grade mass flow controllers
  • Advanced instrumentation technologies
  • Precision equipment used in chip fabrication

Significance

  • Strengthens India’s semiconductor research capabilities
  • Reduces dependence on imported chip manufacturing equipment.
2. Malaysia’s Hotayi Electronic – Manufacturing Facility

Hotayi Electronic will establish a ₹250 crore electronics manufacturing facility at Sanand GIDC.

Production Focus

  • Solid State Drives (SSD)
  • Memory modules

Impact

  • Expected employment: ~1,000 jobs
  • Supports semiconductor and electronics industries.

Sanand first became famous as an automobile manufacturing hub and is now emerging as a semiconductor and electronics cluster.

3. Hi-Spec Ltd – Semiconductor Chemicals

Hi-Spec Ltd plans to establish a ₹750 crore facility to produce semiconductor-grade hydrofluoric acid.

Importance

Hydrofluoric acid is essential for:

  • Silicon wafer etching
  • Cleaning processes in chip manufacturing

This strengthens India’s upstream semiconductor supply chain.

4. Gas Abatement Systems Manufacturing

Kiansh International Technologies, in collaboration with a South Korean technology company, will invest ₹25 crore to manufacture:

  • Gas abatement systems
  • Industrial scrubbers

These systems are used in semiconductor and solar manufacturing plants to manage chemical emissions.

5. Rohm Semiconductor – IC Packaging Partnership

Japanese chipmaker Rohm Semiconductor has partnered with Suchi Semicon.

Focus

  • Integrated Circuit (IC) packaging
  • Semiconductor testing solutions

Semiconductor Manufacturing Stages

StageDescription
DesignChip architecture development
FabricationManufacturing chips on silicon wafers
PackagingEncasing chips for protection
TestingEnsuring performance and reliability

The partnership strengthens packaging and testing capabilities in India.

6. Investment in Deep-Tech Startup

Kaynes Semicon, subsidiary of Kaynes Technology India Limited, will invest ₹500 crore in SpectraGaze Systems.

Research Focus

  • Outer space imaging technologies
  • Advanced semiconductor applications
  • Deep-tech innovation.

Gujarat’s Semiconductor Ecosystem

These investments aim to create a complete semiconductor ecosystem including:

  • Raw materials
  • Semiconductor chemicals
  • Manufacturing equipment
  • R&D centres
  • Packaging and testing facilities
  • Deep-tech startups.

Major semiconductor clusters are emerging in:

ClusterImportance
SanandElectronics manufacturing hub
DholeraSemiconductor manufacturing cluster

India’s Semiconductor Policy

India launched the India Semiconductor Mission in 2021.

Key Features

  • Incentive package of $10 billion
  • Support for:
    • Chip fabrication plants
    • Semiconductor supply chains
    • R&D ecosystem
    • Semiconductor design startups.

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